12 ADMINISTRATIVE CENTRE ANNEX (ACA) INCLUDING PROVINCIAL OFFENCES ACT COURTS UPDATED BUSINESS CASE, COSTING PLAN, AND PROJECT SCHEDULE

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1 Clause No. 12 in of was adopted, without amendment, by the Council of The Regional Municipality of York at its meeting held on October 17, ADMINISTRATIVE CENTRE ANNEX (ACA) INCLUDING PROVINCIAL OFFENCES ACT COURTS UPDATED BUSINESS CASE, COSTING PLAN, AND PROJECT SCHEDULE recommends adoption of the following recommendations contained in the report dated October 3, 2013 from the Commissioner of Corporate Services: 1. RECOMMENDATIONS It is recommended that: 1. Council receive the updated business case and estimated project budget for development of the Administrative Centre Annex previously approved in Council authorize the agreement between the Region and WZMH Architects for architectural and engineering services be amended to increase the contract price within the Capital Spending Authority for this project from $6,245,185 to $9,345,185 exclusive of HST as a result of changes in project scope and escalating costs. 3. Subject to first obtaining Capital Spending Authority, staff be authorized to issue the project for tender in 2016 and the Commissioner of Corporate Services be authorized to award the contract(s) for the development of Administrative Centre Annex to the lowest compliant bidder(s) provided that the total cost of the project does not exceed $212.8 million, including project management costs, and excluding HST. 4. Council authorize financing the project by: a) the issuance of up to $212.8 million in debentures, or b) the withdrawal of up to $212.8 million from Reserves, or c) a combination of debenture issuance and reserve withdrawals in an amount of up to $212.8 million, at the discretion of the Commissioner of Finance

2 Clause No The Commissioner of Corporate Services be authorized to negotiate, amend and execute any agreements or documents necessary to complete the project, subject to review by Legal Services. 2. PURPOSE This report seeks Council approval of the updated business case and project cost estimates related to development of the Administrative Centre Annex (the Annex ), to be constructed on Regionally-owned lands, immediately adjacent to the Administrative Centre in Newmarket. The report further seeks authorization to approve additional consultant fee requests, and associated contract and purchase order increases and extensions, as well as escalation costs associated with project time extensions, requested by the Region, due to budget limitations and the Council approved (2012) scope change of increasing the building size from approximately 310,000 to approximately 422,000 gross square feet (GSF). 3. BACKGROUND The construction of the Administrative Centre Annex will effectively address the Region s space needs in the central part of the Region The Administration Centre and satellite Regional facilities continue to experience ongoing growth pressures. The Administrative Centre currently houses over 1,000 staff, more than triple its original occupancy in 1994 and well above its architectural design capacity. In 2002, the Region contracted Ventin Group (Architects) to conduct an Architectural Audit of the Administration Centre. The Architectural Audit confirmed that 778 staff could be accommodated within the usable office area of the Administration Centre. Recent space intensification efforts in the central part of the Region has provided some relief to demand pressures, however, these initiatives have reached the technical limits of effectiveness and can no longer be relied on to address growth needs. The Administrative Centre Annex provides an opportunity for the Region to add approximately 1,500 new workspaces within the boundaries of the Administration Centre campus. This new workspace inventory would significantly reduce mid-term growth pressures in the central part of the Region while reducing the Region s reliance on increasingly scarce, quality lease space. Over the past five years, the Region has experienced significant growth resulting in demand for more services. Consequently, this has led to space capacity issues for service level staff. Consolidating operations in a purpose-built facility, designed to address the functional requirements of Regional departments will meet client and customer demands.

3 Clause No Approximately 1,150 current workspaces are being considered for relocation to the Administrative Centre Annex (See Table 1). Based on historical growth rates, the Administrative Centre Annex would be able to support growth in the central part of the Region until 2025 or possibly longer if growth rates decline. Owned space in Newmarket is functionally obsolete and in need of ongoing and expensive rehabilitation and renovation There are three Regionally-owned facilities in Newmarket identified by the Region's consultants as functionally obsolete and in need of expensive ongoing rehabilitation and maintenance and repair. Building Condition Audits (BCAs) have been completed on these facilities and a number of needed repairs have been delayed as long as possible pending a decision on the Administrative Centre Annex. In addition, these older owned buildings are not Accessibility for Ontarians with Disabilities Act (AODA) compliant and both the costs and/or existing infrastructure of the buildings will make it prohibitive to make them compliant. The 62 Bayview Parkway building was constructed in 1957 and houses some of the Region's Community and Health Services staff. While it served as the original Regional Headquarters from 1971 to mid-1994, the building had been in existence for many years prior. This building is in constant need of repair. If the Administrative Centre Annex were not to be constructed, current and projected rehabilitation costs are estimated to be approximately $2.3 million by 2014, and another $3.5 million from 2014 to This includes asbestos removal, cost of swing space and structural repairs. The 22 Prospect Street building is home to one of the Region s dental clinics and nutrition programs, where dental care and referrals are delivered on-site. It is a ground lease arrangement, where the Region owns the building, but the property is owned by Southlake Regional Hospital and leased to the Region at no cost. The facility is 46 years old and is also functionally obsolete by modern office standards. Current and projected rehabilitation costs are estimated to be approximately $1.5 million in 2014 and another projected $2.1 million from 2014 to 2048 for structural repair work and swing space. The 55 Eagle Street building provides services through the Early Intervention Services program. The building was constructed in 1972 and has escalating maintenance and rehabilitation needs. Current and projected rehabilitation costs are estimated to be approximately $1.1 million in 2014 and another $1.5 million for ongoing maintenance from 2014 to 2048.

4 Clause No The Administrative Centre Annex will alleviate the Region s upcoming Court Services challenges Regional Court Services are expected to experience increases in service delivery within the next five years. The leased location at 465 Davis Drive, Newmarket (the Tannery ) hosts three courtrooms and is slated for redevelopment by its ownership group within the next five years. The existing courtrooms are near-capacity and would be unable to support an increase in volume, resulting from growth trends or legislative changes that add to the Court burden. Additionally, the Tannery building is over 100 years old and does not fully comply with Ministry of the Attorney General (MAG) requirements for space standards, security, and parking. A purpose built facility will address the future needs of this program. Further potential complications to Court Services are on the horizon with the lease expiration of the South Service Centre (SSC) located at 50 High Tech Road, Richmond Hill, due in The SSC accommodates two courtrooms which are also near-capacity. The current landlord has not given an indication at this time of their willingness to extend the existing lease nor have any alternate sites been identified as potential options should the site become unavailable for extension or is deemed to be unsuitable for service delivery. Any decision on the future of the SSC would have to be made by no later than 2019 to ensure no disruption to service delivery for this as well as other programs. The Annex provides an opportunity for the Region to construct 10 modern courtrooms that comply with MAG requirements for space standards, security, and parking. In addition, the incremental courtroom capacity will provide the Region with significant growth space to maintain or improve service levels, while offering an alternative space solution, should any of the existing options become compromised or unfavourable to the Region.

5 Clause No Table 1 Candidates under consideration for consolidation to the Administrative Centre Annex Leased Locations Dept. No. of Employees current No. of Employees/ Workspaces projected 520 Cane Parkway CHS Gorham Street - York Housing Inc. CHS Davis Drive, 1st and 2nd floor CHS Davis Drive, Suite 206 and 207 CS Davis Drive, Suite CS Davis Drive, Suite 218 CS Davis Drive, Suite 226 CS Davis Drive, Suites CS Davis Drive, Suites CS New Program Provincial CHS Owned Locations Yonge Street CHS Prospect Street CHS Bayview Parkway CHS Eagle Street CHS Eagle street CHS Total Constructing the Administrative Centre Annex is contingent on the Town of Newmarket Urban Centres Secondary Plan The Town of Newmarket Urban Centres Secondary Plan Planning Area consists of 130 hectares and is generally located along the Yonge Street corridor between Upper Canada Mall and Huron Heights Drive and along the Davis Drive corridor between the Town s northerly boundary and Savage Road (Attachment 1). The Secondary Plan will amend the current parent Official Plan for the Town of Newmarket. The plan is expected to receive Town of Newmarket Council approval by the end of In June 2013, Newmarket staff proposed adding a new future north/south local road parallel and west of Yonge Street connecting Upper Canada Mall/Davis Drive to Eagle Street and the Provincial Court House something necessitated by future urban centre densities. The proposed future road would intersect the planned site of the Administrative Centre Annex. Regional and Town of Newmarket staff have been working together to develop options that would mitigate any impacts the Secondary Plan would have on the Administrative

6 Clause No Centre Annex. However, site plan approval for the Administrative Centre Annex will be contingent on satisfying the requirements of the Secondary Plan. Regional staff is conducting surveys of the subject lands to determine the impact of the Secondary Plan proposed road on the project and implications for Site Plan approval. The Master Accommodation Plan reflects Council s preference for owning properties compared to leasing space The Region s Master Accommodation Plan approved by Council in 2005 is based on a preference for owning facilities as compared to renting. Similarly, the Region s Leasing of Real Property Policy, endorsed by Council in September 2009, outlines the factors to be considered when deciding to lease a property as compared to purchasing or developing an owned property. Leasing space is desirable if: Underlying program funding from sources external to the Region is temporary in nature Relocating premises in the mid-term will allow for the provision of services to another area of the Region arising from shifting demographics Longer term owned accommodation is planned in the near to mid-term, making leasing an acceptable gapping strategy Relatively small space requirements make ownership unfeasible Limited appropriate space is available for purchase within an area at any point in time 4. ANALYSIS AND OPTIONS This report analyses four scenarios for the purpose of evaluating this opportunity: 1. Continuing with status quo (remaining in existing owned and leased locations and securing additional space for growth) 2. Annex Construction Scenario 1 (Base Case) 3. Annex Construction Scenario 2 (Moderate Case) 4. Annex Construction Scenario 3 (Best Case) The three Annex Construction scenarios illustrate a range of potential savings that build upon each other in descending order with potential incremental benefits. In effect, the scenarios range from a worst case to best case comparison. For the purpose of this analysis, the base case is simply a direct comparison of the cost of leasing existing space versus the cost to construct and operate the Administrative Centre Annex over the long-term.

7 Clause No In support of these analyses, staff have retained several independent experts to review and verify the accuracy of the financial model and to provide an opinion about the reasonableness of the assumptions used. LOCATIONAL AND PROPERTY FEATURES The property location is optimal for business operations The Administrative Centre Annex proposed location is directly adjacent to the existing Administration Centre and will be connected by a covered pedestrian bridge allowing the staff to seamlessly traverse between buildings and interact with each other. The Annex building site is located within 6 kilometres of Highway 404, is close to public transit, and is located along the Yonge Street corridor in Newmarket which is expected to significantly increase in density and desirability per the proposed Newmarket Secondary Plan. The central location of the property is close to many amenities and services, making it an excellent location for staff and customers. Intensifying the Administration Centre campus will reduce travel between Regional offices resulting in cost savings, improved productivity, and environmental benefits. The formation of a single, connected campus of adjacent sites will allow for operational synergies that would otherwise be inaccessible. The Town of Newmarket is currently working on approving a new Secondary Plan for its Urban Centre which includes the subject (Annex) lands. The Region will continue to work closely with the Town to ensure that both the Town and the Region s planning objectives are satisfied. Consolidating Regional operations at this site would: Maximize the use of valuable, Regionally-owned lands Provide an important opportunity to show leadership in anchoring the development of Newmarket s Urban Growth Centre with a well-designed, multi-use, transit supportive, energy efficient, and accessible Regional Campus Development Support Provincial, Regional and local planning policies and city-building initiatives by locating the facility on the Yonge Street rapid transit corridor Provide excellent opportunities for internal synergies, productivity increases, and revenue opportunities while providing better access to staff and the Region as a whole Eliminate leasing and rehabilitation costs of existing outdated buildings Constructing a new Administrative Centre Annex will provide an opportunity to operate in a purpose-built facility Construction of the Administrative Centre Annex would allow the Region to design a purpose-built facility that meets Regional accommodation standards for staff and improves service delivery options for the community. Leased space is limited by availability and may not always meet the breadth of functional requirements demanded

8 Clause No by departments for service delivery and operations. In addition, expansion and modifications can be limited by the landlord thus constraining service delivery. The Administrative Centre Annex is being designed with current and future departmental needs incorporated within the building envelope. Security of tenure would allow the Region to utilize built space to its full potential, at its own discretion, and without restriction. The building is well suited for the Region s uses The property has several features that are desirable for Regional use, including: A versatile floor plate that can be adapted to meet changing needs and staff growth Ten courtrooms designed to MAG standards while allowing for future growth A direct connection to the Administrative Centre via an enclosed, climate-controlled pedestrian bridge increasing staff efficiency and communication Additional parking capacity that can support the entire Administrative Centre campus An energy efficient building that reduces the Region s energy footprint, reduces operating costs, and promotes a healthy environment for the surrounding community Located along a major corridor and transit line that improves access for staff and the public The opportunity to take advantage of operational synergies that occur through proximity to the Administration Centre Dedicated ground floor kiosks for better public service The opportunity to expand the Corporate Customer Service initiative through a large working presence in the Administrative Centre Annex atrium Expanded food services that can serve staff and the general public Maximizing the value of Regionally owned adjacent lands Providing a well-designed, multi-use, and fully AODA accessible facility for staff and public Improved service delivery by bringing together multiple locations of CHS staff, in appropriately designed program spaces Serving as a catalyst for future, higher density development in Newmarket along Yonge Street Mitigating the challenges associated with sub-optimal office and court facilities including the loss of control associated with leased space Lessening the impact of market scarcity for quality office space in the central part of the Region The updated business case further contemplates relocating the proposed Annex Data Centre to another location and completing full renovations of the 7 th and 8 th floors during the initial construction period, to optimize space use and address interim operational needs. These changes have been incorporated into the updated financial model to reflect evolving accommodation realities.

9 Clause No Constructing a new Administrative Centre Annex would consolidate a number of leased locations in central York Region Currently, the Region owns or is leasing space in 14 different locations in central York Region that have been identified and are in queue to relocate to a Regionally-owned facility. Permanent space for these leased locations is unavailable in existing or planned facilities. This has led to fragmented operations as well as inefficiencies in facilities management. Constructing the Administrative Centre Annex would allow the Region to consolidate all of these properties. Constructing a new Administrative Centre Annex is more cost-effective than continuing to lease at existing locations A full financial analysis was undertaken to determine the value of constructing a new Administrative Centre Annex or remaining in existing leased or owned spaces throughout the Region. A revised financial model was developed for the purpose of this update and has been validated by external consultants. Key assumptions for any of the scenarios were based on historical, market, projected, or inferred rates. Regional staff and external experts collaborated to ascertain the reasonableness of all estimates. Several factors were considered in the analysis and a range of benefits was calculated for the Administrative Centre Annex. Given the complexity of this type of construction and the time horizon for analysis, staff and external experts determined that the most appropriate method of presentation would be to look at the Administrative Centre Annex along a spectrum of possibilities, each building upon the previous analysis due to increasing uncertainty in assumptions. At a minimum, the Base Case for construction is well supported for this type of analysis and can be used as a basis for comparative purposes. Constructing the Administrative Centre Annex is more cost-effective to the Region than continuing to lease at existing sites. As shown in Table 2, the net present value cost of ownership is less expensive than continuing to lease the properties being considered for consolidation.

10 Clause No Table 2 Cost Comparison Status Quo vs. Annex Construction Option Net Present Value Savings vs. Status Quo Existing Leases Status Quo $163.9M -- Annex Construction Scenario 1 (Base Case) $137.4M $26.5M Annex Construction Scenario 2 (Moderate Case) $128.8M $35.1M Annex Construction Scenario 3 (Best Case) $104.0M $59.9M Notes: 1. Net present value and savings have been calculated using a 30-year time horizon. 2. For NPV analysis, the residual value of the building is considered in determining the overall value of the option. The Annex Construction scenarios assume that the estimated value of the property at the end of 30 years is $259.7M using a year-over-year market inflation rate of 2%. Realty Services appraisers estimated a 2013 value for the building to be $127.3M using the income approach to appraised value. The income approach is an industry standard formulation for appraisal. For a new construction, the initial cost is typically greater than market value, however, it is anticipated that the market value will eventually meet or exceed construction costs through market appreciation. 3. Projected total lease payments include rent plus additional fees (i.e. gross rent) but do not include leasehold and capital improvements or other operating costs. 4. It is estimated that the structure will have a lasting benefit beyond the 30-year analysis. 5. The three Annex Construction scenarios illustrate a range of potential savings that build upon each other in descending order with potential incremental benefits. In effect, the scenarios range from a worst case to best case comparison. For the purpose of this analysis, the base case is simply a direct comparison of the cost of leasing existing space versus the cost to construct and operate the Administrative Centre Annex over the long-term. 6. Annex Construction scenarios consider the following factors: Scenario 1 (Base Case: Direct comparison of leasing vs. construction of the Annex) Scenario 2 (Base Case plus moderate avoidable travel cost assumptions) Scenario 3 (Best Case plus avoidable travel costs, incremental revenues, and productivity gains) In the analysis of the net costs of the Region s current leasing arrangements compared to the net costs of constructing the Administrative Centre Annex, the following factors were considered: All payments to landlords for current properties Estimate of growth space identified by departments Estimated conservative rental increases for base lease amounts and inflationary increases for the operating, maintenance and property tax portion of lease payments The phasing-in of current leasing arrangements and the cost of continuing these arrangements during the period of ownership Construction costs, including conservative estimates for any ancillary costs, including permit fees, legal costs, and site improvements that may be required for the building Financing costs to construct Operating, maintenance, and other costs for the Administrative Centre Annex

11 Clause No Capital and leasehold costs for leased properties and the Administrative Centre Annex based conservative allowances using industry standards An estimated value of the property at the end of 30 years. In a build option, the building will have a residual value that must be considered (rental properties have no residual value to the Region) The use of a discount rate for net present value purposes that is reflective of the Region s expected borrowing rates Escalation costs resulting from the two-year delay to commence construction. The cost increase to the project budget is estimated to be approximately $17.0 million In addition, the following additional factors were not considered: Potential incremental revenues resulting from increasing the number of courtrooms from three to ten Parking revenues that could be generated in the future should the Region adopt paid parking areas on-site Potential appreciation of surrounding lands that may increase in value due to higher density and site improvement Potential increased costs of leasing due to market scarcity in the general vicinity of the Administrative Centre Annex. The financial analysis assumed that comparable leased space would be in unlimited supply and that rates would not be impacted by increasing the Region s leasing inventory Benefits derived through improved access to public services and proximity of Justices of the Peace to the centre of Justice in York Potential savings resulting from reduced lease and contract administration, legal support, and other efficiencies arising from having leased sites consolidated into one location. A partial allocation for benefits was considered in the best case scenario Moving and relocation costs associated with the consolidation Potential gains from buildings being vacated that have other possible uses or development potential The residual value of creating growth space for adjacent departments or programs in existing owned locations Constructing the Administrative Centre Annex would result in an incremental savings (net present value) ranging from $26-60M compared to the status quo Construction of the Administrative Centre Annex would add significant non-financial benefits (for example improved customer services or better intra-staff communication) that are difficult to accurately quantify and have been omitted from the net present value analysis. While these factors have sound organizational merit, the subjective nature of these variables requires independent judgement to be applied to weighting and should be considered on the whole, albeit separately from the financial analysis.

12 Clause No Link to key Council-approved plans From Vision to Results: 2011 to 2015 Strategic Plan Priority Area Manage the Region s Finances Prudently Practise sound Fiscal Management Priority Area Focus Growth along Regional Centres and Corridors Optimize the transportation capacity and services in Regional Centres and Corridors Priority Area Make Regional Services More User-friendly Streamline customer access to services and information through implementation of a no wrong door approach 5. FINANCIAL IMPLICATIONS Constructing an Administrative Centre Annex will save money Constructing the Administrative Centre Annex is economically favourable in comparison with leasing multiple properties. In addition to savings achieved through space consolidation, the cost to own the building is cheaper than leasing the space over a 30- year period. When debt service payments, property taxes, and maintenance are taken into consideration, construction of the Administrative Centre Annex property is the most financially prudent option. Ownership provides the Region with security of tenure, a strategic location to consolidate office space, expanded options for customer service, and an opportunity to capitalize on potential real estate appreciation over the long-term. Construction costs are estimated to be approximately $181.0 million and other project costs are estimated to be approximately $31.8 million (See Table 3). These costs incorporate furniture, fixtures and equipment (FFE), information technology, security, professional fees, tender costs, testing and inspection, permits and other fees, in accordance with Regional standards or other governmental requirements, and project management costs. It is recommended Council approve an upset limit for construction and other related costs in an amount of $212.8 million, for this project to allow for any unforeseen contingencies that may arise. Project costs incorporate an aggregate of $27.8 million for contingency risk. Property Services retained an external consultant (Altus Group Limited) to conduct a risk analysis of the project and associated costs. According to the consultant, the current contingency retained of $27.8M is reasonable at this stage of the project. It should be noted that this level of contingency may not be adequate if any significant changes are made to the building design, there are major program modifications, or significant delays are initiated by the Region.

13 Clause No Table 3 Estimated Construction and Other Project Costs Summary Estimated Cost Building cost Other Project Costs Total Estimated Construction and Other Project Costs $181.0M $31.8M $212.8M Notes: 1. Estimated costs have been provided by AECOM Canada Ltd. with input from other Regional subconsultants including WZMH, AW. Hooker, Morrison Hershfield, Stantec, and Malone Given Parsons 2. Due to the two year time delay for the start of construction, additional costs are factored in and added to the project budget for escalation cost of construction, other project costs including FFE, consultant fee inflation, scope changes and lease extensions 3. The original schedule and total project cost as presented to Council in February 2012 was $195.6 million. The construction was to have been completed in Q The two (2) year time delay resulted in an increase of approximately $12.2 million to the project budget 4. Assumes that the construction tender will be issued in Q with substantial completion in Q Other project costs include furniture, fixtures and equipment (FFE), information technology, security, professional fees, tender costs, testing and inspection, permits and other fees, plus $4.8 million for project management costs 6. Cost figures include a an aggregate of $27.8 million for contingency There are Increases for Other Project Costs Other project costs for the Administrative Centre Annex include furniture, fixtures and equipment (FFE), information technology, security, professional fees, tender costs, testing and inspection, permits and other fees. Increases for other project costs include consultant fees related to project scope changes and escalation costs related to additional work and project delays (See Table 4) and have been captured within the total project costs of $212.8 million. In January 2012, Council approved Option 2B, and requested an increase to the building size from approximately 310, ,000 GSF. This resulted in a $1.8 million cost increase. In June 2013, WZMH (Regionally contracted construction Architects) requested additional fees for work associated with the Doane House relocation study requested by the Region and updates required following the approval of the building size increase. Further increases to WZMH s fees were requested in relation to the two year delay to cover the cost of deferred time, inflation, and construction budget increases. WZMH s request for additional fees totals $3.1 million.

14 Clause No Summary Table 4 Summary of WZMH Requested Fee Increase Estimated Cost Scope Change 30% Fee Increase (Option 2B: 310,000 $1.8M 422,00 GSF) Fee Increase based on Building Cost Increase $270K Delay in project Start-up ( ) $1.0M Additional Fee: Doane House Relocation Study $10K Facility Program Update $27K Total Fees $3.1M Notes: 1. Council approved an increase in building size (Option 2B) from approximately 310, ,00 GSF 2. Increases for other project costs include consultant fees related to project scope changes and escalation costs related to additional work and project delays and have been captured. 3. The $3.1 million fee increase is shown separately in this table but is already included within the total project costs of $212.8 million (see Table 3: Estimated Construction and Other Project Costs). This project will require increasing the Region s Capital Spending Authority (CSA) The current budgeted CSA in the Region s approved 2013 Capital Budget for the years is $6.401 million. It is recommended the CSA be increased by $3.100 to $9.501 million to allow for an expected increase in design and related costs prior to construction. If a commitment is made by Council to proceed with the Administrative Centre Annex, the project s CSA will increase by a further $203.3 million to a total of $212.8 million. If approved, it is recommended that this project considered in the 2014 budget at the full commitment amount. This project will have an impact on the Region s Annual Repayment Limit (ARL) If this project is debt financed for the entire $212.8 million, it is estimated the impact to the Region s debt room could be between $125 million - $139 million depending on the amortization period of the loan. This required ARL impact reflects the expected difference between lease payments in 2020 and the payments on the debenture which would be incurred for the Annex if it is debt financed. Alternatively, if some of the construction costs were funded from reserves, the ARL would be reduced by $587,000 to $653,000 for each $1 million funded from a reserve, depending on the amortization period of the debt. It is recommended the Commissioner of Finance be given the

15 Clause No authority to decide on the most appropriate funding sources for this project during the period of development and financing. By 2020, it is expected the tax levy impact of operating and financing the Administrative Centre Annex in comparison with maintaining required leases will be nominal. 6. LOCAL MUNICIPAL IMPACT The Administrative Centre Annex will be located next to the Administration Centre and along a major transit corridor and roadway. The building site is expected to be congruent with the Town of Newmarket Secondary Plan for increased density along Yonge Street. Centralizing Regional facilities would provide improved local access to services. 7. CONCLUSION Construction of the Administrative Centre Annex will consolidate a number of spaces currently leased by York Region into a centralized purpose-built facility. The Administrative Centre Annex offers a strategic opportunity for the Region to consolidate staff and services within a single campus, offer a range of public services to clients in a fully-accessible, modern facility connected by Regional transit, and supports intensification in one of the Regional Centres and Corridors. The building offers administrative cost savings and would support Council s approved Master Accommodation Plan, which is based on a preference for owning facilities as compared to renting. The approval of this facility would address a number of critical issues related to space pressures and growth. The Administrative Centre Annex will provide a long-term cost savings to taxpayers in the range of $26.5-$59.9 million as compared to current leasing arrangements for employees. For more information on this report, please contact René Masad, Director, Property Services Branch at Ext The Senior Management Group has reviewed this report. (The attachment referred to in this clause is attached to this report.)

16 DRAFT NEWMARKET URBAN CENTRES SECONDARY PLAN SCHEDULE 6: STREET NETWORK ASPENWOOD DRIVE GREEN LANE BRISTOL ROAD LONDON ROAD MAIN STREET NORTH BAYVIEW PARKWAY LUNDY`S LANE ELGIN STREET HURON HEIGHTS DRIVE WOODSPRING AVENUE BONSHAW AVENUE DAWSON MANOR BOULEVARD LANCASTER AVE KINGSTON ROAD GEORGE STREET WILSTEAD DRIVE PARKSIDE DRIVE LONGFORD DRIVE HILLVIEW DRIVE PENN AVENUE ASA STREET SIMCOE STREET CALGAIN STREET QUEEN STREET MILLARD AVENUE LORNE AVENUE CHURCH STREET MAIN STREET PROSPECT STREET PATTERSON STREET QUEEN STREET SRIGLEY STREET GORHAM STREET ALEXANDER ROAD CROSSLAND GATE GLADMAN AVENUE EAGLE STREET GO TRANSIT BARRIE LINE McCAFFREY ROAD SANDFORD STREET CLEARMEADOW BOULEVARD MULOCK DRIVE SAVAGE ROAD SAWMILL VALLEY DRIVE JOE PERSECHINI DRIVE Existing Arterial Existing Primary Collector WILLIAM ROE BOULEVARD Proposed/Upgraded Primary Collector Existing Minor Collector Proposed/Upgraded Minor Collector Proposed Local Road Proposed Private Road/Lane (Conceptual) Pedestrian Mews Connection (Conceptual) Existing Signal Potential Signal Mobility Hub Station Area Plan Study Area (Conceptual) Prospect to Bayview Parkway Study Area Planned VIVA Rapidway Station GO Transit Station Future GO Transit Station Mobility Hub Railway Existing Bridge Potential Future Bridge m